<h1>Opposition states demand compensation and sharing of extra levies as GST rejig proposes 5%, 18% and special 40% rates</h1> Opposition-ruled states met before a GST Council session to demand compensation for revenue losses from a proposed GST slab rejig that would cut most items to two rates (5% and 18%) and create a special 40% rate for selected demerit/luxury goods. They warned the change would lower state receipts and sought assurances, including that any extra levies above the 40% rate be shared with states. The Centre argues lower rates will boost consumption and offset losses over time. The council must also address replacement of the compensation cess, which is phasing out as loan repayments conclude, and design a mechanism to preserve tax incidence on targeted items.